kottke.org posts about Next

For three years, Nick Kokonas's trio of eating/drinking establishments in Chicago (Next, Alinea, and Aviary) has been using a ticketed reservation system. In this epic piece, Kokonas details why they started using tickets and what the effect has been (emphasis mine):

Our ticket implementation strategy at Alinea was to create a "higher-touch" system than we had previously used at Next. Every customer buying a ticket at Alinea must include a cell phone number where we can reach them. About a week before they dine with us we call every customer to thank them for buying a ticket to Alinea, ask if they have any dietary restrictions or special needs, and generally get a feel for their expectations and whether it is a special occasion. We can, in fact, spend more time (not less) with every single one of our customers because we are only speaking with the customers we know are coming to dine with us. Previously, we answered thousands of calls from people we had to say 'no' to. Now we can take far more time to say 'yes'.

The results on Alinea's business are staggering. Bottom line EBITDA profits are up 38% from previous average years. No shows of full tables are almost non-existent and while partial no-shows still occur they are only a handful of people per week at most. That allows us to run at a far greater capacity with less food waste and more revenue.

Will be interesting to see if more restaurants adopt this model...I bet a bunch of restaurateurs' eyes lit up at the 38% increase in profit. But not every restaurant is Alinea and not every restaurateur is a clever former derivatives trader.

Next is a restaurant like no other. Every season the menu and service explore an entirely different cuisine. Buying a ticket is the only way to get in... and the entire season sold out in a few hours. The inaugural menu took diners back to Paris: 1906, Escoffier at the Ritz for a multi-course pre fixe dinner that was described by the New York Times as "Belle Epoque dishes largely unseen on American tables for generations."

Ok, someone needs to do this: 1. Open a restaurant (in New York, say) that features old menus from Next every three months using the Next cookbooks to plan menus. 2. Call it Previous. 3. Profit!

From 1990, a NY Times article on a new factory built by Next, the company Steve Jobs started after he left Apple. The more you learn about Next, the more you realize just how much Next DNA there is in the current incarnation of Apple. The story of Apple's second coming could easily be written as the triumph of Next. This section from the middle of the article articulates perfectly Apple's current approach to manufacturing:

Indeed, critics of Mr. Jobs, who is 35 years old, say he is wasting his money by building a factory at this point. With the small number of machines he is building today, it would have been cheaper simply to contract with other companies to assemble the computers, they say.

But Dr. Piszczalski said the initial high investment in an automated factory may permit Next more control of its expenses while volumes are low.

And backers of Mr. Jobs note that he has a long-term strategy in which manufacturing makes sense. "Steve will be in business for the long pull," said H. Ross Perot, one of Next's investors. "He's not in business for six months."

Next's products have yet to gain a significant share of the marketplace, but Mr. Jobs, who has a reputation for painstaking attention to detail and a passion for the importance of manufacturing, argues that by linking this flexible factory more closely than ever to Next's research and development process, his company can gain a strategic advantage in the industry that will eventually pay off in larger sales.

In Mr. Jobs's view, the factory testifies to the fact that the United States can still compete as both a low-cost and a world-class manufacturer when it sets its mind to the task.

Mr. Jobs said he modeled the factory after those of Japanese corporations like the Sony Corporation that have perfected a design-for-manufacturing strategy that transforms the factory floor into an extension of the company research and development center.

Update: Next made a documentary on how computers are made at the new factory.